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Israel to withhold Palestinian funds in response to UN vote

Israel Materials 2 December 2012 14:16 (UTC +04:00)
Israel will withhold and not transfer tax revenue it collects on behalf of the Palestinian Authority, in reaction to a Palestinian move this week to upgrade its UN status, Finance Minister Yuval Steinitz said Sunday, dpa reported.
Israel to withhold Palestinian funds in response to UN vote

Israel will withhold and not transfer tax revenue it collects on behalf of the Palestinian Authority, in reaction to a Palestinian move this week to upgrade its UN status, Finance Minister Yuval Steinitz said Sunday, dpa reported.

Israel media said the move is part of Israel's retaliation for the Palestinians' successful application to the United Nations to have their status upgraded to "non-member state," a move Israel objected to and said was aimed at circumventing negotiations.

The confiscated funds - around 460 million shekels, or 120 million dollars - will be used to offset debts the PA owes the Jewish state for electricity supplied it.

On Friday, Israel reacted to the Palestinian triumph at the UN Thursday by announcing the construction of 3,000 homes in West Bank settlements, sparking international criticism.

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